Question 1

What are marketing channels? Briefly explain some of the different types of intermediaries.

Accepted Answer

Marketing channels are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.They are the set of pathways a product or service follows after production,culminating in purchase and consumption by the final end user.Some intermediaries-such as wholesalers and retailers-buy,take title to,and resell the merchandise;they are called merchants.Others-brokers,manufacturers' representatives,sales agents-search for customers and may negotiate on the producer's behalf but do not take title to the goods;they are called agents.Still others-transportation companies,independent warehouses,banks,advertising agencies-assist in the distribution process but neither take title to goods nor negotiate purchases or sales;they are called facilitators.

Question 2

Producers often shift some functions to intermediaries.Which of the following is the most significant benefit of doing this?

Accepted Answer

A) It increases customer loyalty. 
B) It provides the producer with greater control over operations. 
C) It reduces the amount of direct customer interaction. 
D) It lowers the producer's costs and prices. 
E) It ensures greater information security. 
A) It increases customer loyalty. 
B) It provides the producer with greater control over operations. 
C) It reduces the amount of direct customer interaction. 
D) It lowers the producer's costs and prices. 
E) It ensures greater information security. D

Question 3

Which of the following is the most complete and accurate description of a pure-click company?

Accepted Answer

A) These are companies that launch a Web site without any previous existence as a firm. 
B) These firms' business models are based on advertising revenue. 
C) These are established companies that have an online site for selling products. 
D) These companies get paid every time a user visits their Web site. 
E) These companies sell online space to other Web sites and are paid for the service. 
A) These are companies that launch a Web site without any previous existence as a firm. 
B) These firms' business models are based on advertising revenue. 
C) These are established companies that have an online site for selling products. 
D) These companies get paid every time a user visits their Web site. 
E) These companies sell online space to other Web sites and are paid for the service. A

Question 4

Which of the following allows a firm to maintain control over the service level and obtain more dedicated and knowledgeable selling?

Accepted Answer

A) selective distribution 
B) intensive distribution 
C) push strategy 
D) exclusive distribution 
E) pull strategy 
A) selective distribution 
B) intensive distribution 
C) push strategy 
D) exclusive distribution 
E) pull strategy

Question 5

When a manufacturer requests a behavior that is warranted under the contract,the manufacturer is using coercive power.

Accepted Answer

A) True 
 B)False

Question 6

Unrelated companies put together resources or programs in horizontal marketing systems.

Accepted Answer

A) True 
 B)False

Question 7

The first step in global channel planning is to get close to customers.

Accepted Answer

A) True 
 B)False

Question 8

Conflicts between various franchisees of a company are an example of vertical channel conflict.

Accepted Answer

A) True 
 B)False

Question 9

DMM Industries,a manufacturer of composite metal products,sells its products using a conventional marketing channel.The company decides to adopt a vertical marketing system to improve its performance.What advantages could this provide?

Accepted Answer

Each entity in a conventional channel is

Question 10

M-commerce refers to ________.

Accepted Answer

A) conducting business using mobile channels 
B) the use of mass media communications to attract customers 
C) providing mobile and on-site services to customers 
D) the use of a specific medium to communicate with prospects 
E) using the Internet as a medium for doing business 
A) conducting business using mobile channels 
B) the use of mass media communications to attract customers 
C) providing mobile and on-site services to customers 
D) the use of a specific medium to communicate with prospects 
E) using the Internet as a medium for doing business

Question 11

Atronix Solutions is a major manufacturer of electronic measuring devices in Asia.The company often threatens to terminate its relationship with its intermediaries if they do not agree with its terms and conditions.What channel power does Atronix use? What are its effects?

Accepted Answer

Here,the manufacturer is using

Question 12

Distributors' territorial rights define the terms under which the producer will enfranchise other distributors.

Accepted Answer

A) True 
 B)False

Question 13

Vertical marketing systems achieve economies through size,bargaining power,and elimination of duplicated services.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a major advantage of adding more channels for selling?

Accepted Answer

A) It helps the company increase its market coverage. 
B) It helps the company reduce its fixed costs. 
C) It reduces the likelihood of channel conflict. 
D) It is the best strategy for selling low-involvement consumer products. 
E) It results in economies of scale. 
A) It helps the company increase its market coverage. 
B) It helps the company reduce its fixed costs. 
C) It reduces the likelihood of channel conflict. 
D) It is the best strategy for selling low-involvement consumer products. 
E) It results in economies of scale.

Question 15

Orion Airlines is an airline that provides domestic and international air transport services.Explain the five service outputs provided by marketing channels with reference to Orion.

Accepted Answer

Lot size-Customers may be allowed to boo

Question 16

A(n)________ includes the producer,wholesaler(s),and retailer(s)acting as a unified system.

Accepted Answer

A) parallel marketing channel 
B) vertical marketing system 
C) extensive marketing channel 
D) internal marketing system 
E) conventional marketing channel 
A) parallel marketing channel 
B) vertical marketing system 
C) extensive marketing channel 
D) internal marketing system 
E) conventional marketing channel

Question 17

All functions in a marketing channel use scarce resources and can be shifted among channel members.

Accepted Answer

A) True 
 B)False

Question 18

Brick-and-click companies are those that have launched a Web site without any previous existence as a firm.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of a zero-level channel?

Accepted Answer

A) A company takes online orders from customers and ships the products to them. 
B) An organization uses a combination of direct salespeople and sales agencies to increase sales. 
C) A company sells its products through wholesalers and retailers. 
D) A company sells its products through chains of supermarkets and other large sellers. 
E) A large company forms alliances with smaller companies to increase sales coverage. 
A) A company takes online orders from customers and ships the products to them. 
B) An organization uses a combination of direct salespeople and sales agencies to increase sales. 
C) A company sells its products through wholesalers and retailers. 
D) A company sells its products through chains of supermarkets and other large sellers. 
E) A large company forms alliances with smaller companies to increase sales coverage.

Question 20

A franchise organization is an example of a(n)________ vertical marketing system.

Accepted Answer

A) corporate 
B) administered 
C) contractual 
D) regulatory 
E) controlled 
A) corporate 
B) administered 
C) contractual 
D) regulatory 
E) controlled

Exam 15: Designing and Managing Marketing Channels and Value Networks

What are marketing channels? Briefly explain some of the different types of intermediaries.

Producers often shift some functions to intermediaries.Which of the following is the most significant benefit of doing this?

Which of the following is the most complete and accurate description of a pure-click company?

Which of the following allows a firm to maintain control over the service level and obtain more dedicated and knowledgeable selling?

When a manufacturer requests a behavior that is warranted under the contract,the manufacturer is using coercive power.

Unrelated companies put together resources or programs in horizontal marketing systems.

The first step in global channel planning is to get close to customers.

Conflicts between various franchisees of a company are an example of vertical channel conflict.

DMM Industries,a manufacturer of composite metal products,sells its products using a conventional marketing channel.The company decides to adopt a vertical marketing system to improve its performance.What advantages could this provide?

M-commerce refers to ________.

Atronix Solutions is a major manufacturer of electronic measuring devices in Asia.The company often threatens to terminate its relationship with its intermediaries if they do not agree with its terms and conditions.What channel power does Atronix use? What are its effects?

Distributors' territorial rights define the terms under which the producer will enfranchise other distributors.

Vertical marketing systems achieve economies through size,bargaining power,and elimination of duplicated services.

Which of the following is a major advantage of adding more channels for selling?

Orion Airlines is an airline that provides domestic and international air transport services.Explain the five service outputs provided by marketing channels with reference to Orion.

A(n)________ includes the producer,wholesaler(s),and retailer(s)acting as a unified system.

All functions in a marketing channel use scarce resources and can be shifted among channel members.

Brick-and-click companies are those that have launched a Web site without any previous existence as a firm.

Which of the following is an example of a zero-level channel?

A franchise organization is an example of a(n)________ vertical marketing system.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

Creating Customer Value,satisfaction,and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Managing Retailing,wholesaling,and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, sales Promotions, events, and Public Relations

Managing Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

Filters